CMBI acted as Joint Bookrunner for the Hong Kong IPO of Strawbear Entertainment Group (2251.HK)

Transaction Overview

Strawbear Entertainment Group ("Strawbear", Stock code: 2251.HK) is successfully listed on the Hong Kong Stock Exchange on January 15, 2021. CMBI acted as Joint Bookrunner and Joint Lead Manager for this IPO.

Strawbear issued 165,780,000 shares (assuming the Over-allotment Option is not exercised), and the offering price was set at HK$5.88, and the offering amount was approximately HK$975 million (assuming the Over-allotment Option is not exercised), which was expected to be mainly used to fund its drama series production, secure more IPs and fund potential investment in, or merger and acquisition of, companies that may enhance the market position and ramp up the drama series development, production and distribution. The offering has been widely recognized by international and domestic investors and the investment from cornerstone investors include Snow Lake Capital, Origin Flair Limited (IDG Capital) and Vipshop.

Acting as the Joint Bookrunner and Joint Lead Manager, CMBI has assisted the company to attract a number of hedge funds and CMBI’ private bank clients, perfectly demonstrating CMBI's broad investor coverage and strong underwriting capability. The Company thought highly of the contribution of CMBI in underwriting process, especially contribution to the high-quality book.

The listing of Strawbear in Hong Kong Stock Exchange Main Board is the first TMT sector equity transaction completed by CMBI in 2021 and one of the most famous IPO deals in TMT sector in Hong Kong’s capital market. This deal has consolidated the CMBI’s leading position in the TMT sector. The successful completion of the global offering is another classic showcase of CMBI in serving China New Economy clients.

Source: Company Announcement


About Strawbear

Strawbear is a major drama series producer and distributor in the PRC, covering the investment, development, production and distribution of TV series and web series. According to the Frost & Sullivan Report, Strawbear ranked fourth among all drama series producers and distributors in the PRC in terms of the number of the first-run broadcast TV series in 2019, representing a market share of 6.0%. Strawbear also ranked sixth among all drama series producers and distributors in the PRC in 2019 in terms of (i) the revenue generated from drama series and (ii) the number of episodes of drama series distributed for the first-run and re-run broadcast, representing a market share of 1.8% and 2.1%, respectively, according to the same source.

Strawbear generates revenue primarily from (i) licensing the broadcasting rights of our self-produced drama series to TV channels, online video platforms or third party distributors; (ii) licensing the broadcasting rights of outright-purchased drama series from online video platforms or drama series producers to TV channels, third party distributors or online video platforms; and (iii) production services for made-to-order drama series per online video platforms’ orders.

Strawbear’s platform business model provides a competitive advantage over industry peers and empowers the company to effectively integrate premium industry resources, such as well-recognized screenwriters, producers, directors and actors, filming and production studios as well as external quality control specialists, into its well-established ecosystem to achieve synergies. Besides, its industry resource integration capability also ensures the quality and success of drama series, which is evidenced by its audience reception. Given its market leadership, close relationship with premium industry resources and quality self-produced drama series, Strawbear was the only drama series producer that possessed Television Drama Production Permit (Class A) in Jiangsu Province as well as one of the 73 holders nationwide as of December 31, 2019, in recognition of its contributions to the drama series industry.

Source: Prospectus


This material is for reference only. Investor should rely only on the information contained in the Prospectus of this Global Offering to make investment decision.

Publish Date:2021-01-19

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